Africa Oil Corp (AOIFF)

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Kenya races ahead of Uganda with $3b London oil finance deal

Sunday October 6 2019

Kenya has signed an agreement with oil multinationals that is intended to attract up to Ksh308.4 billion ($3 billion) financing for development of its Turkana petroleum deposits, potentially placing the country ahead of Uganda in the race to the market.

Kenyan petroleum ministry officials were this past week in London to finalise an information memorandum that will be marketed to global financiers who are keen on putting money in the Turkana oil project.

The deal, which was confirmed by Petroleum Principal Secretary Andrew Kamau, comes at a time when Uganda, which discovered crude deposits six years earlier than Kenya, is locked in an impasse with oil multinationals that has resulted in the suspension of production and export infrastructure projects.

“We have agreed on the project information memorandum that allows us to do market sounding, which is going to the market to source for funds,” Mr Kamau told The EastAfrican in an interview. “The memorandum is being shared with banks that we know have the size and the appetite to finance this kind of project. We are looking at 10 banks, both local and international.”




Read more at:
https://www.theeastafrican.co.ke/business/Hope-for-Turkana-oil-project-as-Kenya-signs-deal/2560-5300564-tm3do5/index.html